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PROFESSIONAL SOCIETIES
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Chemical engineering society explores options in tough economy The American Institute of Chemical Engineers (AIChE) is facing serious financial difficulties that threaten its long-term viability. Earlier this month, President Dianne Dorland sent a letter to members alerting them to the institute's "erosion of financial health" and referring to the "possibility of insolvency within a year." The weak economy has buffeted the nonprofit professional association, which was founded in 1908 and has about 50,000 members. Scott J. Hamilton, director of planning, development, and corporate communications, explains that "people are not going to meetings the way that they normally would, they're not attending continuing education courses, they're not buying books. On top of that, we've experienced some pretty substantial losses due to the stock market." And the institute hasn't yet recouped "substantial investments" made over the past five or six years in developing new products and services such as distance learning programs. AIChE, which is based in New York City, has been operating at a deficit since 1999. Unaudited financial results for 2002 show an operating deficit of $6 million and an additional $1 million pension obligation. This year's deficit is expected to reach $3 million. AIChE has cut staff 30% over the past 18 months and raised dues 25% for 2003, according to Hamilton. But Dorland noted in her letter that "major restructuring of our organization and programs is imperative for financial stability." She and the board are contemplating two principal courses of action, Hamilton says. One option is to streamline goods and services offered. The other is to form an alliance with another scientific or professional society. Hamilton says AIChE has had "rather extensive conversations" with two organizations, which he declined to name. AIChE will make its decision by early June.
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